Japanese companies eye RI's oil and gas blocks
Saturday, June 4 2005 - 03:07 AM WIB
The two companies expressed their willingness to join the tender during the official visit of President Susilo Bambang Yudhoyono to Japan last week. During a meeting with the Indonesian delegation, the Japanese investors however demanded a special incentive from the government.
Kardaya Warnika, the head of BP Migas, the government's agency in charge of oil and gas exploration and production, said that the government could provide a special privilege to the two Japanese investors under "business to business" deal. He, however, did not elaborate.
The Ministry of Energy and Mineral Resources said earlier that the government would launch the bidding of the country's 26 oil and gas blocks in June 9, this year. 14 of the new oil blocks would be offered to investors through an open bidding, and the other 12 oil and gas blocks through a direct appointment.
The tender will mark the opening of the government's oil and gas tender for 2005 during which some 70 oil and gas blocks will be offered to investors for exploration and production.
With regards Japan's LNG exports, Kardaya said that Japanese buyers would likely increase their LNG imports from Indonesia in the coming years given the continued increase in the LNG demand in the country.
Acccording Kardaya, the Japanese buyers would likely seek to renegotiate the LNG import contract before signing the new deal. The price of the LNG sold to Japan is relatively higher than those sold to other buyers because the contract is based on the price fluctuation on the international market.
Minister of Energy and Mineral Resources Purnomo Yusgiantoro said that he was aware about the Japanese LNG buyers' problem. "We still have much time to renegotiate the new contract because the current contract will expire 2010," he added. (*)